Wednesday, 16 November 2011
By Nguon Serath
PHNOM PENH, Nov 16 - Cambodia now has USD 3.3 billion in debt which is expected to increase every year as the government needs more money to develop the country. [Other sources put Cambodia's debt at $8 billion].
The government is blamed by the opposition for the debt. However, an economist said that Cambodia needed more money for economic growth and that debt had little impact on the future of Cambodia if effectively used.
“If the government uses that money for economic development, it will boost economic growth,” said Kang Chandararath (pictured), president of the Cambodian Institute for Study and Development
PHNOM PENH, Nov 16 - Cambodia now has USD 3.3 billion in debt which is expected to increase every year as the government needs more money to develop the country. [Other sources put Cambodia's debt at $8 billion].
The government is blamed by the opposition for the debt. However, an economist said that Cambodia needed more money for economic growth and that debt had little impact on the future of Cambodia if effectively used.
“If the government uses that money for economic development, it will boost economic growth,” said Kang Chandararath (pictured), president of the Cambodian Institute for Study and Development
6 comments:
Bunch of useless Monkeys with PhD. "The government is blamed by the opposition for the debt." So the nations national budget is in crisis because of the opposition overspending?? GO back to to school CPP Monkeys!! How did 8 billions in debt, dropped down the 3.3 billions in debt the next day?
Where did he get his degree? The school of CPP. What plan the government has in place to show revenue will be coming in? What a fucking moron. I know you guy buy PHD and Doctor degree. It just like the general with many stars in Cambodia. Shame on you for calling yourself economist.
Any one want to buy Phd? 90% discount. We have Phd in Economic, leadership, management, business etc. Pay today, we print them tomorrow and you can start using it right away. However, you cannot use it in any other countries in the world beside Cambodia. We have provided many Phd to CPP high ranking officials including this moron. He is the expert in his pocket economy. By the way he sings like a pirate as long as the master feed him.
I agree with this person of economic progress, if it uses the funds properly. However, debt is not good for long term economic growth. It works for short term patches. Sooner or later, debts have to be paid back. The government lacks the ability to enforce tax law and its inability to generate revenues made it vulnerable to inflation and stagnant.
I think the government is banking on future oil revenue in 12-1-2012. But one must be realistic. Corruptions at every level could effect the cash flow.
So, why am I being pessimistic? Any time you take on new debt and has not begun to pay back old debts yet is alarming. There are too many causes and effects on the issue of this country economy. This forum is not the place to debate.
Mr. kang, you are right to a certain point.
You are smart to frame the
condition of using the borrowing money," if the government uses the money for economic developemt, Cambodai is better off." Sound like if we work together we can succeed everything. If we united, we stand. If we eat right and excersice, we are in good health. If we are not divorced, we will live together, ect... a nine yard long list.
But the question is not "IF", But rather how Cambodian Government can manage the money toward the development giving the level of corruption is unprecedented in Cambodian history and in the region. Simply it is the question of one dollar for the economic development and three dollars for admistrrative and personal/family use expenses.
Cambodia can't manage his own airline. Its CEO is vietnamese. Cambodian can't manage its airports, its CEO is French, railroad will be managed and run by Australian company and the list move on...Most of rural development planning and phnom penh are majority driven by the input of JICA and KIDA,USAID and COMRAD, so forth... Yes, the government has created the secure,safe and peace for things to happen. It is huge positve but then time to take advantage is very slow and comlication.
Some people may say we are just in the stage of recovery of years of negligence and war. They can say these things but just look into VNm which years of war but and other countries.
Increasing human resources YES it take time. But the foundation of desire to build the country of the ground up take just days after war and devastation. Its mean that overwhelming leaders in Cambodian government are in the position of helping the country not to channel money set for the development projects to the pockets. But so far it is not the case. there are many examples to be revealed from roads to bridges projects except private own/run, the foreign friends are doing a bid and hand the key when they are done. What do they want to tell the government?
I have read Dr. Kang analyses many times. His analyses were mostly based on his opinions, not based on rationale or academic assertion. I think he just want to please the CPP, Hun Sen or he is too afraid to say the truth. As a matter of fact, there is nothing wrong to borrow the money to build the infrastructure of the country. Many countries around the world have debts. But the level of debts must be sustainable, not over the country's ability to repay. But the most important thing is the debts must be spent responsibly. What we see now is that Hun Sen is borrowing and spending irresponsibly. Most of the borrowed money has gone down the drain, many infrastructures were built on private investors' money. And much of the tax collections have gone missing in corruption. With the level of debts now, rumored to be around $8 billion, Cambodia will be indebted for generations to come and the next generations could get poorer and poorer due to these debts. People must be mindful that many countries have become poorer after they have deposed their dictatorial leaders because the the new government inherited heavy debts and corrupt bureaucracy. The Philippines, Indonesia, Pakistan, Bangladesh etc, are reeling because they have been struggling to come out of economic and financial doldrums left by despotic leaders. Cambodia could even meet worse financial situations than these countries if the opposition is not attempting to stop Hun Sen from borrowing irresponsibly. I think we have enough debts, now it it time the government reform the financial system, strive to collect more taxes, alleviate corruption and reform the finance ministry and also the corrupt and inefficient bureaucracy.
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